Alumis secures $250m in IPO amid biotech stock surge

Alumis, formerly known as Esker Therapeutics, is set to begin trading on Nasdaq today under the symbol ALMS. This follows the successful pricing of its U.S. initial public offering (IPO), which raised $250 million. The company priced its 13,125,000 shares at $16 each, as stated in a press release on June 27. This price is at the lower end of the previously announced range in a filing with the Securities and Exchange Commission (SEC). According to Reuters, this pricing values the company at roughly $902 million. The IPO is expected to close on July 1.

Alumis recently secured $259 million in Series C financing just three months ago, adding to its funding momentum. The biotech company is focused on immunology and plans to use part of the IPO proceeds to advance its lead asset, ESK-001, into multiple Phase III trials for the treatment of moderate to severe plaque psoriasis. ESK-001 is a tyrosine kinase 2 (TYK2) inhibitor. The company is also conducting a Phase II trial of ESK-001 for systemic lupus erythematosus, an autoimmune disease, and has a Phase I trial for A-005, another TYK2 inhibitor, targeting uveitis, a type of eye inflammation.

The IPO landscape is showing signs of revival after a period of inactivity over the past few years. Alumis' IPO comes during a year that has seen an increase in the number of biotech companies going public. Despite a general decline in biotechs' public listings since a peak in 2020 and 2021, this year has seen a resurgence in activity. Alumis' public debut is among the more significant biotech IPOs in 2024. Other notable biotech IPOs this year include CG Oncology, which raised $380 million in January, as well as Kyverna Therapeutics, Metagenomi, and Alto Neuroscience, which have also listed on U.S. stock markets.

Earlier this month, Telix Pharmaceuticals decided against proceeding with its Nasdaq listing, citing "current market conditions" as the reason for withdrawing its plans. Telix had aimed to raise $232 million from its IPO. Alumis’ successful IPO, therefore, marks a positive note in the biotech sector, contrasting Telix Pharmaceuticals' decision.

In summary, Alumis' move to go public on Nasdaq is a significant step for the company and the biotech sector, signaling a potential rebound in biotech IPOs. The funds raised are set to bolster the company's efforts in advancing its promising TYK2 inhibitor programs aimed at treating moderate to severe plaque psoriasis and other autoimmune diseases. As the IPO is expected to close on July 1, all eyes will be on Alumis as it enters the public market.